India Ratings & Research (Ind-Ra) has revised India’s GDP growth forecast for FY25 to 7.5%, up from 7.1%, driven by improved consumption demand. The growth momentum is supported by government capital expenditure, corporate deleveraging, and a new private corporate capex cycle, along with measures from the union budget to boost rural spending, MSME credit, and employment. Ind-Ra’s projection exceeds RBI’s 7.2% and the Finance Ministry’s 6.5-7%. Private Final Consumption Expenditure is expected to rise to 7.4%, driven by upper-income households, with rural demand boosted by a strong monsoon and budget measures.
